Indian equities plunge on weak global cues
Posted on Aug 01 2014 | IANS
Mumbai, Aug 1 : Weak global economic outlook, heavy selling by foreign funds and worries over high fiscal deficit pulled Indian equities sharply down with two key market indices ending lower by over 1.5 percent.
The sensitive index of the Bombay Stock Exchange (BSE) ended the day at 25,480.84 points, down 414.13 points, or 1.60 percent, while the 50-share Nifty of the National Stock Exchange (NSE) ended at 7,602.60 points, down 118.70 points, or 1.54 percent.
So widespread was the loss that as many as 25 of the 30 stocks that go into Sensex ended lower, while at a broader level 1,819 stocks closed in the red and 1,073 others managed to stay afloat.
The fall Monday was over and above a 192.45-point, or 0.74 percent from its loss Thursday of 135.52 points, or 0.52 percent. The index had logged a small gain of 96.19 points, or 0.37 percent, Wednesday.
Data with the National Securities Depository Limited (NSDL) showed that foreign funds were net sellers Friday in the equities market to the tune of USD 251.4 million, or Rs.1,537.06 crore. Domestic mutual funds bought net stocks worth Rs.1,454.10 crore.
The top loser was Financial Technologies which closed at Rs.303.35, down 5 percent; followed by Torrent Power at Rs.133.45, down 4.71 percent; Titan at Rs.326.15, down 4.37 percent; MCX at Rs.778.30, down 3.96 percent; and Sun TV Network at Rs.405.90, down 3.93 percent.
The top gainer, on the other hand, was GMR Infra which closed at Rs.28.70, with a gain of 7.29 percent; followed by Union Bank at Rs.197.30, up 3.06 percent; Glenmark Pharma at Rs.677.75, up 2.91 percent; Bank of Baroda (BOB) at Rs.894.35, up 2.72 percent; and Mahindra and Mah Fin at Rs.241.55, up 2.70 percent.
A host of global concerns added to the worries. Among them was Argentina defaulting on a bond payment and the growing stand-off between some Western countries, especially the US and Russia over developments in Ukraine.
The prospect of an interest rate hike in the US also weighed heavily.
The rupee also plunged intra-day. It was down 63 paise or 1.04 percent to close at Rs.61.18 at the Interbank Foreign Exchange market. This is rupee's lowest close of over four months.